Hargreaves Lansdown added 29,000 new clients in the three months to the end of September as it continued to spend money advertising its new cash marketplace service.
Active Savings, which allows clients easy-access cash investments alongside the Sipp, Isa, or general investment account wrappers, was first scheduled for release in 2016, but was finally rolled out to select customers 10 months ago.
In a trading update this morning, Hargreaves says after increasing marketing and promotional activity around the service, where customers can access 19 fixed-term savings accounts through seven bank partners, it now has more than £100m managed through the offering.
Total assets under management rose 3 per cent to £94bn – of which around £9bn sits in Hargreaves’ own funds – on the back of £1.3bn in net new business.
Net revenue for the three months came in at £120.8m, up 16 per cent.
Hargreaves chief executive officer Chris Hill “The past quarter has seen an uncertain market environment and weak investor sentiment resulting in an industry-wide slowdown in net retail flows. Despite this backdrop, we believe the strength of our business model positions us well for when sentiment improves.”
Hargreaves has backed Active Savings as a good solution for time-pressed investors. It also recently launched a single fund service for first-time investors.